Posted in: Comics | Tagged: diamond, pokemon

Pokemon, Dynamite & Diamond's Execs Question How Much They Are Owed

Pokemon, Dynamite and Diamond's Chief Marketing Officer question how much they are owed, as part of Diamond Comics' bankruptcy

Dynamic Forces, which includes Dynamite Entertainment, has filed paperwork that recognised that the Initial Notice from the Chapter 11 bankruptcy states that Dynamite is owed $158,820.93. We previously cited Dynamite/Dynamic owner Nick Barrucci saying that the amount was much higher than was stated, closer to a quarter of a million dollars, though in the filing they just say that the amount has "fluctuated since the petition was filed." They also state that Diamond should also include all the attorneys' fees accrued by Dynamic/Dynamite citing precedence in the legal case between Superior Toy & Manufacturing Company from 1996.

This matches some of the words I heard coming out of ComicsPRO, with folk publishing through Image Comics stating that they were owed far more than was stated, and publisher Silver Sprocket owed $25,000 rather than the $5751 in the paperwork.

Pokémon, it seems, has similar issues, who acknowledge that they have been "partially paid as part of the Court approved critical vendor program". But that, again, it does not account for the attorneys' fees and expenses and they again cite Superior Toy & Manufacturing Company. The case in question concerned the Illinois-based toy and game supplier that entered into a licensing agreement with The Cherubs Collection, a division of Playtex Family Products Corporation. Superior Toy fell behind on these payments due to financial struggles and entered Chapter 7 and then Chapter 11 bankruptcy. The case established the precedent that when a contract is assumed, all associated obligations – including unpaid amounts like attorney fees – must be honoured and added to the estate's liabilities.

And Diamond's Chief Marketing Officer Katherine Govier, or Kathy as we knew her on official e-mails, states that the bankruptcy documentation says that she is owed nothing but "as of March 1, 2025, the Debtor owes me $161,499.54 in unpaid wages under my employment contract. Additionally, my salary currently remains below the contractually agreed amount, therefore, unpaid wages will continue to accrue at a rate of $961.54 per biweekly pay period and will increase until the contract is restored or properly assumed with full back pay."

She stated that she signed an employment contract with Diamond in February 2020 at $250,000 per year but at the end of June saw this reduced to $200,000 per year, "without my agreement and in breach of my contract". In 2022 it was then "increased to $225,000 per year after I asserted my right to be paid in accordance with my contract. This was described as a 'first step' toward restoring my salary to the contractual rate. At that time, I also requested back pay but was told that was not possible." She includes her contract in the filing.

The bankruptcy auction, as previously reported, will take place later this month and will conclude by the second week of April. Then we'll have a better idea of who is getting what…

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